Which of the following is NOT considered a type of rating law?

Rating laws govern how insurers calculate premiums for various types of insurance. They are important because they provide guidelines to ensure that prices are fair and that insurance companies remain solvent while serving their policyholders effectively.

The concept of "legal competition" does not fall under the categorization of rating laws. In contrast, "prior approval," "file and use," and "use and file" are all established methodologies that inform how insurers must submit and get approval for their rate changes.

• Prior approval requires insurers to obtain regulatory approval before implementing any new rates. This ensures that the rates are justified and meet regulatory standards before they can be charged to policyholders.

• File and use allows insurers to file their rates with the regulatory body and start using them immediately, provided they meet certain guidelines.

• Use and file similarly allows for rates to be used right away, but typically requires a follow-up filing within a specific timeline for regulatory review.

In contrast, "legal competition" refers more broadly to the competitive environment in which insurance companies operate, which can influence pricing strategies but is not a specific, regulated rating law. Understanding these distinctions helps clarify the nature of insurance regulation in California and ensures a solid grasp of the mechanisms at play in the personal lines insurance market.